OSC secures guilty plea against Ancaster man who misused investor funds meant for real estate loans
The Ontario Securities Commission (OSC) has announced that Ian Ross McSevney, formerly of Ancaster, Ontario, pleaded guilty on July 15, to fraud and distributing securities without filing a prospectus, contrary to Ontario securities law.
The case centres on Altmore Mortgage Investment Corporation (Altmore), a firm McSevney solely directed that raised nearly $5.3 million from approximately 30 Ontario investors between May 2015 and May 2019.
Investors believed their capital would be deployed into mortgages and other loans secured by real estate, a representation that the OSC says was not honoured.
Despite presenting itself as a mortgage investment corporation, Altmore did not establish a significant portfolio of mortgages or real estate secured loans.
While some legitimate loans were arranged, most investor funds were not invested as represented.
Of the approximately $5.3 million raised, about $3 million was returned to investors, typically drawn from the capital of other investors, a structure resembling a Ponzi arrangement.
McSevney also directed approximately $1 million to credit cards, family members, or relatives, though those payments were funded through a combination of investor funds and other sources.
Regulator flags capital markets integrity
Bonnie Lysyk, Executive Vice President, Enforcement at the OSC, said that "investors should expect that their money will be used as represented," adding that McSevney raised millions from investors for what was presented as a mortgage investment corporation but most of those funds were not invested as promised.
The guilty plea adds to a widening national enforcement picture that broker professionals are watching closely. The Financial Services Regulatory Authority of Ontario (FSRA) initiated 100 enforcement actions in its most recent fiscal year, up from 65 the year prior.
The regulator imposed approximately $1.2 million in administrative monetary penalties, with the mortgage brokering sector accounting for the largest share.
A British Columbia submortgage broker who continued arranging mortgages for nearly a year after losing her registration has been hit with $55,000 in penalties — the maximum fine available under the province's Mortgage Brokers Act (MBA).https://t.co/V9tWVF4qPR
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 15, 2026
Joe Sammut, broker of record at Mortgage Architects – A Better Way in Ontario, offered a view on the regulatory shift.
"I've seen more cases against bad actors in the last 12 to 18 months than in previous years," he previously told Canadian Mortgage Professional.
"They seem to be clamping down and cleaning up, and they're making sure the fines they're enacting on people are publicized."
Sentencing submissions still ahead
McSevney's matter returns to court on September 8, at 10 Armory Street in Toronto for the parties to schedule a date for sentencing submissions.
The investigation was conducted by the OSC's Criminal Investigations & Prosecutions team, which sits within the regulator's Enforcement Division and handles securities-related fraud, market manipulation, and related misconduct, including repeat offenders and those who breach Capital Markets Tribunal orders.
Charges laid under Ontario's Securities Act are prosecuted by the OSC. Charges under the Criminal Code are prosecuted by the Ministry of the Attorney General.
The case is the latest in a series of enforcement actions touching the mortgage investment sector in Canada.
Brokers who refer clients to private lending products or mortgage investment corporations (MICs) are encouraged to conduct heightened due diligence on how those vehicles are structured and how investor funds are administered.
The OSC has repeatedly signalled that it considers investor protection in Ontario's capital markets a top enforcement priority.
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